Statutory Auditing Services
In accordance with the Hong Kong Companies Ordinance (Chapter 622), all companies incorporated in Hong Kong are required to have an annual audit. While the Companies Ordinance lays down the obligations for companies, the Inland Revenue Ordinance (Chapter 112) also requires all incorporated companies to enclose audited financial statements when submiting the Profits Tax Return to the Inland Revenue Department. In performing the audit, we adopt a constructive approach and make every effort to maintain the effectiveness and efficiency of every audit.
Each Hong Kong limited company is required to keep proper books of accounts and to prepare audited financial statements. Hong Kong Companies Ordinance also requires that, unless the Hong Kong limited company is a dormant company, audited financial must be presented by the Board of Director to the members of the Company at the Annual General Meeting within a prescribed time limit.
Besides the submission of the audited financial statements to the members of the Compnay, The Inland Revenue Department may also require a limited company to submit a set of audited financial statemetns together with profits tax computation for filing the Company's Profits Tax Return (Form BIR 51)
There is no mandatory year-end date for Hong Kong companies, but 31 March and 31 December are the more common ones. The audited accounts must be done in accordance with the Hong Kong Financial Reporting Standards by a certified public accountant. An audited report consists of the director's report, profit and loss statement and the balance sheet exhibit a true and fair view of the company's financial position.
Does different year-end date affect the deadline for filing tax returns and audit reports?
In General , except for the first tax return issued by the Hong Kong Inland Revenue Department to a limited company (the submission deadline is within three months of the tax return issuance date), all tax returns should be submitted within one month of the tax return issuance date. However, the Hong Kong Inland Revenue Department provides D and M companies with a batch of applications for deferring the filing of tax returns on the year-end date. The general deadlines for submitting tax returns and audit reports after the extension are as follows:
April 1 - November 30 (Type N): Within One month;
December 1 - December 31 (Category D): August 15
January 1 - March 31 (Category M): November 15
The application of Audit Report:
In addition to the statutory and tax reporting requirements, the audit report can also be used by companies to:
Apply for financing/borrowing from the bank;
Apply for funding from the government;
Protect the rights and interests of shareholders;